Self-Regulatory Organizations; Municipal Securities Rulemaking Board; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change To Revise the Content Outline and Selection Specifications for the Series 52 Examination and To Revise the Content Outlines for the Series 50, Series 51 and Series 53 Examinations, 31580-31585 [2018-14469]
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31580
Federal Register / Vol. 83, No. 130 / Friday, July 6, 2018 / Notices
investment company. On September 29,
2017, applicant made a liquidating
distribution to its shareholders, based
on net asset value. Expenses of $51,000
incurred in connection with the
liquidation were paid by the applicant.
Filing Dates: The application was
filed on May 30, 2018, and amended on
June 14, 2018.
Applicant’s Address: c/o Morgan
Stanley Investment Management Inc.,
522 Fifth Avenue, New York, New York
10036.
Oppenheimer Global Multi-Alternatives
Fund [File No. 811–22760]
Summary: Applicant seeks an order
declaring that it has ceased to be an
investment company. On March 9, 2018,
applicant made a liquidating
distribution to its shareholders, based
on net asset value. Expenses of $11,608
incurred in connection with the
liquidation were paid by the applicant’s
investment adviser.
Filing Date: The application was filed
on June 6, 2018.
Applicant’s Address: 6803 S. Tucson
Way Centennial, Colorado 80112.
Oppenheimer Global Multi Strategies
Fund [File No. 811–21918]
Summary: Applicant seeks an order
declaring that it has ceased to be an
investment company. On March 16,
2018, applicant made a liquidating
distribution to its shareholders, based
on net asset value. Expenses of $14,223
incurred in connection with the
liquidation were paid by the applicant’s
investment adviser.
Filing Date: The application was filed
on June 12, 2018.
Applicant’s Address: 6803 S. Tucson
Way Centennial, Colorado 80112.
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Oppenheimer Rochester Maryland
Municipal Fund [File No. 811–21878]
Summary: Applicant seeks an order
declaring that it has ceased to be an
investment company. On March 23,
2018, applicant made a liquidating
distribution to its shareholders, based
on net asset value. Expenses of
approximately $11,480 incurred in
connection with the liquidation were
paid by the applicant’s investment
adviser.
Filing Date: The application was filed
on June 12, 2018.
Applicant’s Address: 6803 S. Tucson
Way Centennial, Colorado 80112.
Oppenheimer Rochester Virginia
Municipal Fund [File No. 811–21884]
Summary: Applicant seeks an order
declaring that it has ceased to be an
investment company. On March 23,
2018, applicant made a liquidating
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distribution to its shareholders, based
on net asset value. Expenses of
approximately $12,230 incurred in
connection with the liquidation were
paid by the applicant’s investment
adviser.
Filing Date: The application was filed
on June 12, 2018.
Applicant’s Address: 6803 S. Tucson
Way Centennial, Colorado 80112.
PNMAC Mortgage Opportunity Fund,
LLC [File No. 811- 22229]
Summary: Applicant, a closed-end
investment company, seeks an order
declaring that it has ceased to be an
investment company. The applicant is
liquidating and will make a final
distribution, promptly following its
deregistration, on the basis of net assets
and pro rata based on share ownership
after payment of any liabilities or
expenses in connection with the
liquidation. Expenses of $10,000
incurred in connection with the
liquidation have been paid by the
applicant. Applicant also has retained
approximately $1.3 million for the
purpose of paying liabilities and
expenses incurred in connection with
the liquidation.
Filing Dates: The application was
filed on May 23, 2018, and amended on
June 20, 2018 and June 29, 2018.
Applicant’s Address: 3043 Townsgate
Road, Westlake Village, California
91361.
PNMAC Mortgage Opportunity Fund LP
[File No. 811- 22228]
Summary: Applicant, a closed-end
investment company, seeks an order
declaring that it has ceased to be an
investment company. The applicant is
liquidating and will make a final
distribution, promptly following its
deregistration, on the basis of net assets
and pro rata based on share ownership
after payment of any liabilities or
expenses in connection with the
liquidation. Expenses of $10,000
incurred in connection with the
liquidation have been paid by the
applicant. Applicant also has retained
approximately $1.2 million for the
purpose of paying liabilities and
expenses incurred in connection with
the liquidation.
Filing Dates: The application was
filed on May 23, 2018, and amended on
June 20, 2018.
Applicant’s Address: 3043 Townsgate
Road, Westlake Village, California
91361.
Triloma EIG Energy Income Fund [File
No. 811–23040]
Summary: Applicant, a closed-end
investment company, seeks an order
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declaring that it has ceased to be an
investment company. On May 15, 2018,
applicant made a liquidating
distribution to its shareholders, based
on net asset value. Expenses of $443,746
incurred in connection with the
liquidation were paid by the applicant
and the applicant’s investment adviser
and/or an affiliate thereof. Applicant
has retained $121,293 in cash and cash
equivalents for the purpose of paying
claims and obligations of the fund.
Filing Dates: The application was
filed on May 23, 2018, and amended on
June 13, 2018.
Applicant’s Address: 201 North New
York Avenue, Suite 200, Winter Park,
Florida 32789.
Triloma EIG Energy Income Fund—
Term I [File No. 811–23032]
Summary: Applicant, a closed-end
investment company, seeks an order
declaring that it has ceased to be an
investment company. On May 15, 2018,
applicant made a liquidating
distribution to its shareholders, based
on net asset value. Expenses of $393,746
incurred in connection with the
liquidation were paid by the applicant
and the applicant’s investment adviser
and/or an affiliate thereof. Applicant
has retained $108,294 in cash and cash
equivalents for the purpose of paying
claims and obligations of the fund.
Filing Dates: The application was
filed on May 23, 2018, and amended on
June 13, 2018.
Applicant’s Address: 201 North New
York Avenue, Suite 200, Winter Park,
Florida 32789.
For the Commission, by the Division of
Investment Management, pursuant to
delegated authority.
Eduardo A. Aleman,
Assistant Secretary.
[FR Doc. 2018–14458 Filed 7–5–18; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–83572; File No. SR–MSRB–
2018–05]
Self-Regulatory Organizations;
Municipal Securities Rulemaking
Board; Notice of Filing and Immediate
Effectiveness of a Proposed Rule
Change To Revise the Content Outline
and Selection Specifications for the
Series 52 Examination and To Revise
the Content Outlines for the Series 50,
Series 51 and Series 53 Examinations
June 29, 2018.
Pursuant to Section 19(b)(1) of the
Securities Exchange Act of 1934 (the
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‘‘Act’’ or ‘‘Exchange Act’’) 1 and Rule
19b–4 thereunder,2 notice is hereby
given that on June 25, 2018 the
Municipal Securities Rulemaking Board
(the ‘‘MSRB’’ or ‘‘Board’’) filed with the
Securities and Exchange Commission
(‘‘Commission’’) the proposed rule
change as described in Items I, II, and
III below, which Items have been
prepared by the MSRB. The
Commission is publishing this notice to
solicit comments on the proposed rule
change from interested persons.
I. Self-Regulatory Organization’s
Statement of the Terms of Substance of
the Proposed Rule Change
The MSRB filed with the Commission
proposed (i) revisions to the content
outline and selection specifications for
the Municipal Securities Representative
Qualification Examination (‘‘Series 52
exam’’) 3 to remove general securities
knowledge content as part of
modifications to the MSRB’s
qualification examination program; 4 (ii)
revisions to the content outline for the
Municipal Fund Securities Limited
Principal Qualification Examination
(‘‘Series 51 exam’’) to reflect changes to
laws, rules and regulations covered by
the examination 5 in response to
1 15
U.S.C. 78s(b)(1).
CFR 240.19b–4.
3 The Series 52 exam selection specifications have
been submitted to the Commission under a separate
cover with a request for confidential treatment
pursuant to SEC Rule 24b–2. The MSRB also is
proposing corresponding revisions to the bank of
examination questions for the Series 52 exam. The
MSRB is submitting this filing for immediate
effectiveness pursuant to Section 19(b)(3)(A) of the
Act and Rule 19b–4(f)(1) thereunder and, based on
established instructions from the Commission staff,
is not filing the Series 52 exam question bank for
Commission review. See Letter to Diane G. Klinke,
General Counsel, MSRB, from Belinda Blaine,
Associate Director, Division of Market Regulation,
SEC, dated July 24, 2000. The question bank is
otherwise available for Commission review.
4 On June 8, 2018, the MSRB filed amendments
to MSRB Rule G–3, on professional qualification
requirements, to modify the MSRB’s qualification
examination program by, among other things,
accepting the Financial Industry Regulatory
Authority’s (FINRA) Securities Industry Essentials
Examination (‘‘SIE exam’’) as a prerequisite to
qualification as a municipal securities
representative and further tailor the Series 52 exam
as a specialized knowledge exam. The SIE exam, a
general knowledge exam, will test fundamental
securities-related knowledge, including knowledge
of basic products, the structure and function of the
securities industry, the regulatory agencies and
their functions. See Exchange Act Release No.
83483 (June 20, 2018) (Notice of Filing and
Immediate Effectiveness) (SR–MSRB–2018–04).
5 MSRB staff reviewed the Series 51 exam bank
and removed or updated the impacted questions
relating to 529 plans and municipal fund securities
to align with the Tax Cuts and Jobs Act of 2017
(‘‘Jobs Act’’) effective date of January 1, 2018. Thus,
because of the changes to the affected examination
items, revisions to the Series 51 exam content
outline are required. For example, deleting the term
‘‘college’’ from the phrase ‘‘529 college savings
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amendments to the tax code following
the enactment of the Jobs Act; 6 and (iii)
revisions to the content outlines for the
Municipal Securities Principal
Qualification Examination (‘‘Series 53
exam’’) and Municipal Advisor
Representative Qualification
Examination (‘‘Series 50 exam’’) 7 to
delete or update subject matter topics to
reflect current references and
nomenclatures and to update current
rule citations as part of the MSRB’s
periodic review of its content outlines
(collectively, the ‘‘proposed revisions to
the content outlines’’). The MSRB is not
proposing any textual changes to its
rules.
The proposed revisions to the content
outlines have been filed for immediate
effectiveness pursuant to Section
19(b)(3)(A) of the Act 8 and Rule 19b–
4(f)(1) thereunder.9 The implementation
date for the revised Series 52 exam
content outline and selection
specifications will be October 1, 2018,
to coincide with the modifications to
the MSRB’s qualification examination
program and launch of the SIE exam,
while the technical amendments to the
content outlines for the Series 50 exam,
Series 51 exam and Series 53 exam will
be announced by the MSRB and
implemented no sooner than 30 days
after filing with the SEC.
The text of the proposed rule change
is available on the MSRB’s website at
www.msrb.org/Rules-andInterpretations/SEC-Filings/2018Filings.aspx, at the MSRB’s principal
office, and at the Commission’s Public
Reference Room.
II. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
In its filing with the Commission, the
MSRB included statements concerning
the purpose of and basis for the
proposed rule change and discussed any
comments it received on the proposed
rule change. The text of these statements
may be examined at the places specified
in Item IV below. The MSRB has
prepared summaries, set forth in
plans’’ to reflect that the tax code now allows for
money saved in a 529 plan to be used for qualified
K–12 education expenses.
6 Public Law 115–97, 131 Stat. 2054 (2017).
7 In addition to these examinations, the MSRB is
in the process of developing another professional
qualification examination, the Municipal Advisor
Principal Qualification Examination (Series 54
exam). The MSRB anticipates filing a proposed rule
change regarding the development of the Series 54
exam, including a proposed content outline, in
August 2018.
8 15 U.S.C. 78s(b)(3)(A).
9 17 CFR 240.19b–4(f)(1).
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31581
Sections A, B, and C below, of the most
significant aspects of such statements.
A. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
1. Purpose
The MSRB is charged with setting
professional qualification standards for
brokers, dealers, and municipal
securities dealers (collectively,
‘‘dealers’’), and municipal advisors.
Specifically, Section 15B(b)(2)(A) of the
Act authorizes the MSRB to prescribe
‘‘standards of training, experience,
competence, and such other
qualifications as the Board finds
necessary or appropriate in the public
interest or for the protection of investors
and municipal entities or obligated
persons.’’ 10 A professional qualification
examination is intended to determine
whether an individual meets the
MSRB’s required qualification
standards. More specifically, the MSRB
has developed professional qualification
examinations that are designed to
establish that persons associated with a
dealer who engage in municipal
securities activities and persons
associated with a municipal advisor
who engage in municipal advisory
activities have demonstrated minimum
levels of competence and knowledge of
the municipal market activities they
engage in, as well as the regulatory
requirements applicable to a particular
qualification category.
The content outline for each MSRB
examination serves as a guide to the
subject matter tested on the examination
and prescribes the baseline knowledge
required in each functional area that is
specific to the role and responsibilities
of associated persons. In addition, the
MSRB provides sample questions in the
content outlines that are similar to the
type of questions that may be found on
an examination. The MSRB periodically
reviews the content outline for each
examination to determine whether
revisions are necessary or appropriate in
light of changes to rules or rule
interpretations, or subject matter
covered by the examinations.
The MSRB is proposing to standardize
certain information that appears across
the content outlines for the Series 50
exam, Series 51 exam, Series 52 exam
and Series 53 exam as well as to make
technical changes to the format of each
of the exam content outlines.
Specifically, the proposed revisions
applicable to each content outline are as
follows: (i) Update the introductory
10 15
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statement to clarify the intended goal of
the content outline; (ii) streamline
details regarding the purpose of the
examination and the review process of
the examination question bank; (iii)
provide information on the intention of
pretesting questions; (iv) retire old
sample questions and provide a new set
of sample questions for each exam; and
(v) replace the current list of reference
materials with a list of government and
self-regulatory organization websites.
A more detailed summary of changes
to the content outline for each
examination is outlined below.
Revisions to the Current Series 52
Content Outline
With the recently filed rule change to
modify the MSRB’s professional
qualification examination program,11 as
of October 1, 2018, the new,
restructured examination format for the
Series 52 exam will require individuals
to take and pass the SIE exam 12 and the
revised Series 52 exam to be qualified
as a municipal securities representative
pursuant to Rule G–3.13 The MSRB’s
Series 52/53 Subcommittee of the
Professional Qualification Advisory
Committee has worked to revise the
Series 52 exam question bank and
content outline to reduce areas of
duplication with the content to be tested
on the SIE exam. Upon the filing of the
proposed revisions to the content
outlines, the MSRB will make available
on its website, in addition to the current
Series 52 exam content outline, the
revised Series 52 exam content outline
that will apply to the revised Series 52
exam effective October 1, 2018.
Individuals who open an exam
enrollment window prior to October 1,
2018 will be enrolling to take the
current Series 52 exam, whereas
individuals who open an exam
enrollment window on or after October
1, 2018 will be enrolling to take the
revised Series 52 exam as well as the
SIE exam.
The number of scored questions on
the revised Series 52 exam will be
reduced from 115 multiple-choice
questions to 75 multiple-choice
questions. Additionally, the test time,
which is the amount of time individuals
would have to complete the
examination questions, will be reduced
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11 See
supra note 4.
filed the content outline for the SIE
exam earlier this year. See Exchange Act Release
No. 82578 (January 24, 2018), 83 FR 4375 (January
30, 2018) (SR–FINRA–2018–002).
13 An individual does not have to take the SIE
exam before taking the revised Series 52 exam, but
an individual will not be qualified as a municipal
securities representative until passing both the SIE
exam and the revised Series 52 exam.
12 FINRA
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from three and one-half hours to two
and one-half hours. As currently is the
case, each multiple-choice question
would be worth one point and the
passing score will remain 70%.
Below is a summary of the proposed
revisions to the Series 52 exam content
outline, which removes duplicative
general knowledge content that will
appear on the SIE exam, and updates or
deletes reference information appearing
on the outline to provide greater clarity
on topic areas covered on the exam. As
previously referenced, the selection
specifications for the Series 52 exam
submitted to the Commission under a
separate cover describe additional
confidential information regarding the
Series 52 exam.
Contents Page
• Subtopics area being removed
under each topic header.
• Part 2 on ‘‘U.S. Government,
Federal Agency and Other Financial
Instruments’’ is being removed; the
other parts are being renumbered
accordingly.14
• The following attachments:
‘‘Attachment A: Contents of a Typical
Notice of Bond Sale’’ and ‘‘Attachment
B: Outline of a Typical Official
Statement’’ are being removed in
addition to references to the
attachments within the outline.
• ‘‘Reference Material’’ is being
revised to ‘‘References.’’
Introduction
The Examination
• The percentages assigned to each
topic on the Series 52 exam are being
adjusted due to the deletion of the topic
‘‘U.S. Government, Federal Agency and
Other Financial Instruments’’ with the
(4%) weighting for that topic reallocated
to other topic areas; the revised
percentages for each topic area will be:
Municipal Securities—(60%); Economic
Activity, Government Policy and the
Behavior of Interest Rates—(14%); and
Securities Laws and Regulations—
(26%).
• The reference to the number of
questions on the Series 52 exam is being
revised to update the number from 115
to 75 multiple-choice questions and the
time to complete the exam adjusted
from ‘‘three and one-half hours’’ to ‘‘two
and one-half hours.’’
14 The subject matter ‘‘U.S. Government, Federal
Agency and Other Financial Instruments’’ is
proposed for deletion from the Series 52 exam to
avoid duplication of subject matter that will be
covered on the SIE exam. See supra note 13.
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Part 1: Municipal Securities
• The parenthetical to the topic
header is being revised from 57% to
60%.
• The following subtopics are being
revised:
Æ 1.2.1.1 on ‘‘method of quotations’’
is being revised to add ‘‘bid/ask
spread;’’
Æ 1.3.1.2.4 the acronym ‘‘EMMA’’ is
being revised to ‘‘Electronic Municipal
Market Access website;’’
Æ 1.3.1.2.5 on ‘‘new issue wires’’ is
being revised to ‘‘new issue/
commitment wires;’’
Æ 1.3.2.2 on ‘‘information sources’’ is
being revised to remove the phrase
‘‘alternative trading systems (ATS)’’ and
the phrase is being added to 1.3.2.3 on
the subtopic of ‘‘market participants;’’
Æ 1.3.2.4.1 on ‘‘kinds of transactions’’
is being revised to add ‘‘riskless
principal;’’ and
Æ 1.3.3.1 on ‘‘published indices’’ is
being revised to add the abbreviation for
‘‘ICE’’ to the parenthetical for ‘‘London
Interbank Offered Rate.’’
• Subtopic headers 1.5.2 on
‘‘relationship of bond prices to change
in maturity’’ and 1.5.9 on ‘‘day-count
basis of computations of dollar price
and accrued interest’’ are being
removed; and the section renumbered
accordingly.
Part 2: Economic Activity, Government
Policy and the Behavior of Interest Rates
• The parenthetical to the topic
header is being revised from 13% to
14%.
• Topic headers and subtopics are
being renumbered in their entirety from
part 3 to part 2.
• Under the topic header ‘‘monetary
policy’’ the subtopics on ‘‘objectives of
Federal Reserve monetary policy;’’
‘‘operating tools of the Federal Reserve;’’
and ‘‘operations of the Federal Reserve’’
are being removed.
Part 3: Securities Laws and Regulations
• Topic headers and subtopics are
being renumbered in their entirety from
part 4 to part 3.
• Topic headers on 4.2–4.2.2 on
‘‘SIPC’’ are being removed.
• The following subtopics are being
revised:
Æ 4.3.4 on ‘‘delivery of investor
brochure’’ is being revised to ‘‘investor
and municipal advisory client education
and protection;’’
Æ 4.3.7 on ‘‘quotations and sales
reports’’ is being revised to ‘‘quotations
and reports of sales or purchases
(transaction reporting);’’
Æ 4.3.8 on ‘‘confirmation, clearance,
settlement and other uniform practice
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requirements’’ is being revised to add
the parenthetical ‘‘minimum
denominations;’’ and 4.3.10 on ‘‘best
execution’’ is being revised to add the
parenthetical ‘‘execution quality.’’
• Topic headers 4.3.25 on
‘‘calculations;’’ 4.3.29 on
‘‘telemarketing;’’ and 4.3.30 on ‘‘antimoney laundering compliance program’’
are being removed.
Revisions to Other MSRB Content
Outlines
Below is a summary of the proposed
revisions to the content outlines for the
Series 50 exam, Series 51 exam and
Series 53 exam as part of the MSRB’s
periodic review of the content outlines
for its examinations. The proposed
revisions to the content outlines are
technical in nature to delete or update
topics to reflect current references and
nomenclatures and to update current
rule requirements and citations where
identified. The proposed revisions to
the content outlines for the Series 50
exam, Series 51 exam and Series 53
exam do not alter the content,
specifications or scoring of these
examinations.
Municipal Fund Securities
Representative Examination—Series 51
Introduction
• Footnote 1 referencing Rule D–12 is
being removed.
Part 2: Product Knowledge
• Subtopic header 2.3.2 on ‘‘529
college savings plans’’ is being revised
to ‘‘529 savings plans.’’
• Under the subtopic header 2.3.2.1
on ‘‘federal tax law issues’’ the term
‘‘higher’’ is being removed as part of the
explanatory description.
• Under the subtopic header 2.3.3 on
‘‘education savings alternatives’’ the
term ‘UGMA’’ is being removed as part
of the explanatory description.
Part 3: General Supervision
• Topic header 3.2 on ‘‘availability of
MSRB rules’’ is being revised to
‘‘availability of Board rules.’’
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Part 4: Fair Practice and Conflicts of
Interest
• Subtopic header 4.3.1 on ‘‘fair
dealing’’ is being revised to ‘‘conduct of
municipal securities and municipal
advisory activities.’’
Part 5: Sales Supervision
• Subtopic header 5.5.3 on ‘‘delivery
of MSRB investor brochure’’ is being
revised to ‘‘investor and municipal
advisory client education and
protection.’’
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Part 7: Operations
• The following subtopics are being
revised:
Æ 7.1 on ‘‘confirmation of
transactions’’ is being revised to
‘‘confirmation, clearance, settlement
and other uniform practice requirements
with respect to transactions with
customers;’’ and
Æ 7.3 on ‘‘books and records’’ is being
revised to ‘‘books and records to be
made by brokers, dealers, and municipal
securities dealers and municipal
advisors.’’
Municipal Securities Principal
Examination—Series 53
Introduction
• Footnote 1 on referenced MSRB
rules is being removed and all other
footnotes renumbered.
Part 2: General Supervision
• The following subtopics are being
revised:
Æ 2.2.1.5. on ‘‘classification of
principals and representatives and
qualification requirements’’ is being
revised to ‘‘professional qualification
requirements;’’
Æ 2.4.1.1 on ‘‘fair dealing rule’’ is
being revised to ‘‘conduct of municipal
securities and municipal advisory
activities;’’
Æ 2.4.3 on ‘‘gifts and gratuities’’ is
being revised to ‘‘gifts, gratuities, noncash compensation and expenses of
issuance;’’ and
Æ 2.4.4 on ‘‘political contributions
and prohibition from engaging in
municipal securities business’’ is being
revised to ‘‘political contributions and
prohibitions on municipal securities
business.’’
• Under the subtopic header 2.4.6.4
on ‘‘product advertisements for
municipal fund securities’’ the term
‘‘college’’ is being removed from the
parenthetical phrase ‘‘including 529
college savings plans.’’
Part 3: Sales Supervision
• The following subtopics are being
revised:
Æ 3.3.4 on ‘‘sophisticated municipal
market professionals (SMMP)’’ is being
revised to ‘‘transactions with
sophisticated municipal market
professionals (SMMP);’’
Æ 3.4.5 on ‘‘prohibition against
reciprocal dealings with municipal
securities investment companies’’ is
being revised to ‘‘reciprocal dealings
with municipal securities investment
companies;’’ and
Æ 3.6.3 on ‘‘delivery of investor
brochure’’ is being revised to ‘‘investor
and municipal advisory client education
and protection.’’
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Part 4: Origination and Syndication
• The following subtopics are being
revised:
Æ 4.1 on ‘‘financial advisors’’ is being
revised to ‘‘activities of financial
advisors;’’
Æ 4.2. on ‘‘new issue syndicate
practices’’ is being revised to ‘‘primary
offering practices;’’
Æ 4.2.3 on ‘‘disclosures in connection
with new issues’’ is being revised to
‘‘disclosures in connection with primary
offerings;’’ and
Æ 4.2.3.2 on ‘‘underwriter
submissions to EMMA’’ is revised to
spell out ‘‘EMMA’’ as ‘‘Electronic
Municipal Market Access.’’
Part 5: Trading
• The subtopic header 5.5 on
‘‘recordkeeping responsibilities’’ is
being revised to ‘‘books and records to
be made by brokers, dealers, municipal
securities dealers and municipal
advisors.’’
Municipal Advisor Representative
Examination—Series 50
• Section headers revised from
‘‘function’’ to ‘‘part;’’ references to
‘‘college’’ removed from ‘‘529 savings
plans.’’
Eligibility Requirements
• The sentence, ‘‘In order to register
for the Series 50 examination, a
candidate must be associated with a
municipal advisor firm that is registered
with both the Securities and Exchange
Commission and the MSRB’’ is being
removed to reflect changes in processes
post-September 12, 2017.
More specifically, the above
referenced sentence refers to the
eligibility requirement that was put into
place during the period in which
persons were able to engage in
municipal advisory activities on behalf
of a municipal advisor prior to being
qualified as a municipal advisor
representative. Currently, an individual
must take and pass the Series 50 exam
prior to engaging in municipal advisory
activities on behalf of a municipal
advisor.15
As noted above, the MSRB has
designated the proposed revisions to the
content outlines for immediate
effectiveness. The implementation date
for the revised Series 52 exam content
outline and selection specifications will
be October 1, 2018, to coincide with the
modifications to the MSRB’s
qualification examination program,
while the technical amendments to the
15 See FAQs on Municipal Advisor Professional
Qualification and Examination Requirements (May
2018).
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daltland on DSKBBV9HB2PROD with NOTICES
content outlines for the Series 50 exam,
Series 51 exam and Series 53 exam will
be announced by the MSRB and
implemented no sooner than 30 days
after filing with the SEC.
2. Statutory Basis
The MSRB believes that the proposed
revisions to the content outlines are
consistent with Section 15B(b)(2)(A) of
the Act,16 which authorizes the MSRB
to prescribe ‘‘standards of training,
experience, competence, and such other
qualifications as the Board finds
necessary or appropriate in the public
interest or for the protection of investors
and municipal entities or obligated
persons’’ and Section 15B(b)(2)(C) of the
Act,17 which requires, among other
things, that MSRB rules ‘‘be designed to
prevent fraudulent and manipulative
acts and practices, to promote just and
equitable principles of trade, . . . and,
in general, to protect investors,
municipal entities, obligated persons,
and the public interest. . .’’ Section
15B(b)(2)(A) of the Act 18 provides the
MSRB with authority to establish
standards of competence. The MSRB’s
professional qualification examinations
are designed to measure knowledge of
the business activities and the
regulatory requirements, including
MSRB rules, rule interpretations and
federal law, applicable to a particular
qualification category.
The proposed revisions to the Series
52 exam content outline and selection
specifications are consistent with
Section 15B(b)(2)(A) of the Act 19
because ensuring the Series 52 exam is
uniquely tailored to the relevant laws,
rules and regulations of the municipal
securities market ensures that municipal
securities representatives attain a
specified level of competence that
would be appropriate and in furtherance
of the public interest. Additionally,
removal of the general securities
knowledge content currently on the
Series 52 exam would provide the
MSRB with greater flexibility to adapt
the Series 52 exam to more specifically
address municipal securities knowledge
and, in doing so, deepening municipal
professionals’ knowledge base in the
interest of investor protection. Also,
proposed revisions to the content
outlines for MSRB-owned examinations
(the Series 50 exam, Series 51 exam and
Series 53 exam) to reflect current
references and nomenclatures and to
update current rule requirements and
citations where identified are likewise
consistent with the purpose of Section
15B(b)(2)(A) of the Act 20 because
providing individuals with a current
guide to the subject matter covered on
the examinations can aid individuals’
preparation for such professional
qualification examinations and
facilitates standards of competence in
furtherance of the public interest.
The proposed revisions to the Series
52 exam content outline together with
the MSRB’s larger effort to modify its
current qualification program are
designed to achieve the stated objective
of Section 15B(b)(2)(C) of the Act 21 to
foster the prevention of fraudulent
practices by enhancing the overall
professional qualification program and
establishing standards for professionals
in the municipal securities market.
Additionally, ensuring municipal
securities professionals are familiar with
the rules and regulations that would be
applicable to their role and
responsibilities in the municipal
securities market is in furtherance of
and consistent with Section 15B(b)(2)(C)
of the Act 22 to facilitate the prevention
of fraudulent practices.
B. Self-Regulatory Organization’s
Statement on Burden on Competition
The MSRB does not believe that the
proposed revisions to the content
outlines will result in any burden on
competition that is not necessary or
appropriate in furtherance of the
purposes of the Act. The proposed
revisions to the Series 52 exam content
outline and changes to the selection
specifications for the Series 52 exam to
reflect a more tailored Series 52 exam
would ensure the standard for
qualification remains robust to maintain
an efficient and effective qualification
examination program. Additionally, the
proposed revisions to the content
outlines for the Series 50 exam, Series
51 exam and Series 53 exam remain in
alignment with the functions and
associated tasks currently performed by
municipal securities representatives,
municipal fund securities limited
principals, municipal securities
principals and municipal advisor
representatives as well as serve as a
guide to the subject matter tested on the
examinations with respect to the
relevant laws, rules and regulations.
Additionally, the proposed revisions to
the content outlines for the Series 50
exam, Series 51 exam and Series 53
exam do not alter the content,
specifications or scoring of these
examinations.
16 15
U.S.C. 78o–4(b)(2)(A).
U.S.C. 78o–4(b)(2)(C).
18 15 U.S.C. 78o–4(b)(2)(A).
19 Id.
17 15
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18:25 Jul 05, 2018
C. Self-Regulatory Organization’s
Statement on Comments on the
Proposed Rule Change Received From
Members, Participants, or Others
Written comments were neither
solicited nor received.
III. Date of Effectiveness of the
Proposed Rule Change and Timing for
Commission Action
The foregoing proposed rule change
has become effective pursuant to
Section 19(b)(3)(A) of the Act 23 and
paragraph (f)(1) of Rule 19b–4
thereunder.24 At any time within 60
days of the filing of the proposed rule
change, the Commission summarily may
temporarily suspend such rule change if
it appears to the Commission that such
action is necessary or appropriate in the
public interest, for the protection of
investors, or otherwise in furtherance of
the purposes of the Act.
IV. Solicitation of Comments
Interested persons are invited to
submit written data, views, and
arguments concerning the foregoing,
including whether the proposed rule
change is consistent with the Act.
Comments may be submitted by any of
the following methods:
Electronic Comments
• Use the Commission’s internet
comment form (https://www.sec.gov/
rules/sro.shtml); or
• Send an email to rule-comments@
sec.gov. Please include File Number SR–
MSRB–2018–05 on the subject line.
Paper Comments
• Send paper comments in triplicate
to Secretary, Securities and Exchange
Commission, 100 F Street NE,
Washington, DC 20549.
All submissions should refer to File
Number SR–MSRB–2018–05. This file
number should be included on the
subject line if email is used. To help the
Commission process and review your
comments more efficiently, please use
only one method. The Commission will
post all comments on the Commission’s
internet website (https://www.sec.gov/
rules/sro.shtml). Copies of the
submission, all subsequent
amendments, all written statements
with respect to the proposed rule
change that are filed with the
Commission, and all written
communications relating to the
proposed rule change between the
Commission and any person, other than
those that may be withheld from the
public in accordance with the
20 Id.
21 15
U.S.C. 78o–4(b)(2)(C).
22 Id.
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23 15
24 17
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U.S.C. 78s(b)(3)(A).
CFR 240.19b–4(f)(1).
06JYN1
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provisions of 5 U.S.C. 552, will be
available for website viewing and
printing in the Commission’s Public
Reference Room, 100 F Street NE,
Washington, DC 20549 on official
business days between the hours of
10:00 a.m. and 3:00 p.m. Copies of the
filing also will be available for
inspection and copying at the principal
office of the MSRB. All comments
received will be posted without change.
Persons submitting comments are
cautioned that we do not redact or edit
personal identifying information from
comment submissions. You should
submit only information that you wish
to make available publicly. All
submissions should refer to File
Number SR–MSRB–2018–05 and should
be submitted on or before July 27,2018.
For the Commission, pursuant to delegated
authority.25
Eduardo A. Aleman,
Assistant Secretary.
[FR Doc. 2018–14469 Filed 7–5–18; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–83560; File No. SR–NYSE–
2018–30]
Self-Regulatory Organizations; New
York Stock Exchange LLC; Notice of
Filing of Proposed Rule Change To
Provide for the Listing of Exchange
Traded Products With No Component
NMS Stock Listed on the Exchange,
Amend Its Rules Regarding Unlisted
Trading Privileges, and Make
Corresponding Changes
daltland on DSKBBV9HB2PROD with NOTICES
June 29, 2018.
Pursuant to Section 19(b)(1) 1 of the
Securities Exchange Act of 1934
(‘‘Act’’) 2 and Rule 19b–4 thereunder,3
notice is hereby given that, on June 15,
2018, New York Stock Exchange LLC
(‘‘NYSE’’ or the ‘‘Exchange’’) filed with
the Securities and Exchange
Commission (‘‘Commission’’) the
proposed rule change as described in
Items I and II below, which Items have
been prepared by the self-regulatory
organization. The Commission is
publishing this notice to solicit
comments on the proposed rule change
from interested persons.
25 17
CFR 200.30–3(a)(12).
U.S.C. 78s(b)(1).
2 15 U.S.C. 78a.
3 17 CFR 240.19b–4.
I. Self-Regulatory Organization’s
Statement of the Terms of Substance of
the Proposed Rule Change
The Exchange proposes to to [sic]
amend its rules to (1) provide for the
listing of exchange traded products
(‘‘ETPs’’) that do not have any
component NMS Stock 4 that is listed on
the Exchange or that is based on, or
represents an interest in, an underlying
index or reference asset that includes an
NMS Stock listed on the Exchange; (2)
delete certain redundant listing rules
that would be superseded by these
initial and continued listing and trading
requirements for the listing of ETPs; and
(3) make changes to its unlisted trading
privileges (‘‘UTP’’) Rule 5.1(a)(2), as
well as certain supplementary changes
throughout Rules 5P and 8P, to conform
to the rules of the Exchange’s affiliate,
NYSE National, Inc. (‘‘NYSE National’’).
The proposed rule change is available
on the Exchange’s website at
www.nyse.com, at the principal office of
the Exchange, and at the Commission’s
Public Reference Room.
II. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
In its filing with the Commission, the
self-regulatory organization included
statements concerning the purpose of,
and basis for, the proposed rule change
and discussed any comments it received
on the proposed rule change. The text
of those statements may be examined at
the places specified in Item IV below.
The Exchange has prepared summaries,
set forth in sections A, B, and C below,
of the most significant parts of such
statements.
A. Self-Regulatory Organization’s
Statement of the Purpose of, and the
Statutory Basis for, the Proposed Rule
Change
1. Purpose
The Exchange proposes to amend its
rules to provide for the listing of
Exchange Traded Products (‘‘ETPs’’)
that do not have any component NMS
Stock that is listed on the Exchange or
that is based on, or represents an
interest in, an underlying index or
reference asset that includes an NMS
Stock listed on the Exchange; (2) delete
certain redundant listing rules that
would be superseded by these initial
and continued listing and trading
requirements for the listing of ETPs; and
(3) make changes to its unlisted trading
privileges (‘‘UTP’’) Rule 5.1(a)(2), as
1 15
VerDate Sep<11>2014
18:25 Jul 05, 2018
4 NMS Stock is defined in Rule 600 of Regulation
NMS, 17 CFR 242.600(b)(47).
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31585
well as certain supplementary changes
throughout Rules 5P and 8P, to conform
to the rules of the Exchange’s affiliate,
NYSE National, Inc. (‘‘NYSE National’’).
Background
Currently, the Exchange trades ETPs
on an UTP basis only pursuant to Rules
5P and 8P.5 In the NYSE ETP Listing
Rules Filing, the Exchange represented
that Rules 5P and 8P would contain
initial and continued listing and trading
requirements for ETPs, but that they
would apply only to the trading
pursuant to UTP of ETPs on the
Exchange.6 Accordingly, the Exchange
included preambles to both Rules 5P
and 8P that provide that ‘‘the provisions
of this Rule [5P/8P] shall apply to the
trading pursuant to UTP of Exchange
Traded Products on the Exchange. This
Rule [5P/8P] shall not apply to the
listing of Exchange Traded Products on
the Exchange.’’ Rule 5.1(a)(1), which
was adopted in the NYSE ETP Listing
Rules Filing, further provides that ‘‘the
provisions of Rules 5P and 8P that
permit the listing of Exchange Traded
Products would not be effective until
the Exchange files a proposed rule
change to amend its rules to comply
with Rules 10A–3 and 10C–1 under the
Exchange Act and to incorporate
qualitative listing criteria, and such
proposed rule change is approved by the
Commission.’’ Because Rules 5P and 8P
were designed to support the trading of
ETPs on a UTP basis only, the Exchange
did not change any of its rules relating
to the listing of ETPs.
Proposed Rule Changes To Provide for
Listing of Certain ETPs
The Exchange is proposing to list
certain ETPs. Specifically, the Exchange
proposes to list ETPs that meet the
requirements of Rules 5P and 8P,
provided such ETPs do not have any
component NMS Stock that is listed on
the Exchange or that is based on, or
represents an interest in, an underlying
index or reference asset that includes an
5 See, Securities Exchange Act Release No. 80214
(March 10, 2017), 82 FR 14050 (March 16, 2017)
(SR–NYSE–2016–44) (Approval Order) (‘‘NYSE ETP
Listing Rules Filing’’). In connection with the
Exchange’s implementation of Pillar for Tape B and
C securities, NYSE filed several additional rule
changes. See Securities Exchange Act Release Nos.
76803 (December 30, 2015), 81 FR 536 (January 6,
2016) (SR–NYSE–2015–67) (Notice of Filing and
Immediate Effectiveness of Proposed Rule Change);
81225 (July 27, 2017), 82 FR 36033 (August 2, 2017)
(SR–NYSE–2017–35) (Notice of Filing and
Immediate Effectiveness of Proposed Rule Change);
and 82945 (March 26, 2018), 83 FR 13553 (March
29, 2018) (SR–NYSE–2017–36) (Approval Order)
(‘‘NYSE Trading Rules Filing’’).
6 See id. NYSE ETP Listing Rules Filing.
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]]>Agencies
[Federal Register Volume 83, Number 130 (Friday, July 6, 2018)]
[Notices]
[Pages 31580-31585]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2018-14469]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-83572; File No. SR-MSRB-2018-05]
Self-Regulatory Organizations; Municipal Securities Rulemaking
Board; Notice of Filing and Immediate Effectiveness of a Proposed Rule
Change To Revise the Content Outline and Selection Specifications for
the Series 52 Examination and To Revise the Content Outlines for the
Series 50, Series 51 and Series 53 Examinations
June 29, 2018.
Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934
(the
[[Page 31581]]
``Act'' or ``Exchange Act'') \1\ and Rule 19b-4 thereunder,\2\ notice
is hereby given that on June 25, 2018 the Municipal Securities
Rulemaking Board (the ``MSRB'' or ``Board'') filed with the Securities
and Exchange Commission (``Commission'') the proposed rule change as
described in Items I, II, and III below, which Items have been prepared
by the MSRB. The Commission is publishing this notice to solicit
comments on the proposed rule change from interested persons.
---------------------------------------------------------------------------
\1\ 15 U.S.C. 78s(b)(1).
\2\ 17 CFR 240.19b-4.
---------------------------------------------------------------------------
I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change
The MSRB filed with the Commission proposed (i) revisions to the
content outline and selection specifications for the Municipal
Securities Representative Qualification Examination (``Series 52
exam'') \3\ to remove general securities knowledge content as part of
modifications to the MSRB's qualification examination program; \4\ (ii)
revisions to the content outline for the Municipal Fund Securities
Limited Principal Qualification Examination (``Series 51 exam'') to
reflect changes to laws, rules and regulations covered by the
examination \5\ in response to amendments to the tax code following the
enactment of the Jobs Act; \6\ and (iii) revisions to the content
outlines for the Municipal Securities Principal Qualification
Examination (``Series 53 exam'') and Municipal Advisor Representative
Qualification Examination (``Series 50 exam'') \7\ to delete or update
subject matter topics to reflect current references and nomenclatures
and to update current rule citations as part of the MSRB's periodic
review of its content outlines (collectively, the ``proposed revisions
to the content outlines''). The MSRB is not proposing any textual
changes to its rules.
---------------------------------------------------------------------------
\3\ The Series 52 exam selection specifications have been
submitted to the Commission under a separate cover with a request
for confidential treatment pursuant to SEC Rule 24b-2. The MSRB also
is proposing corresponding revisions to the bank of examination
questions for the Series 52 exam. The MSRB is submitting this filing
for immediate effectiveness pursuant to Section 19(b)(3)(A) of the
Act and Rule 19b-4(f)(1) thereunder and, based on established
instructions from the Commission staff, is not filing the Series 52
exam question bank for Commission review. See Letter to Diane G.
Klinke, General Counsel, MSRB, from Belinda Blaine, Associate
Director, Division of Market Regulation, SEC, dated July 24, 2000.
The question bank is otherwise available for Commission review.
\4\ On June 8, 2018, the MSRB filed amendments to MSRB Rule G-3,
on professional qualification requirements, to modify the MSRB's
qualification examination program by, among other things, accepting
the Financial Industry Regulatory Authority's (FINRA) Securities
Industry Essentials Examination (``SIE exam'') as a prerequisite to
qualification as a municipal securities representative and further
tailor the Series 52 exam as a specialized knowledge exam. The SIE
exam, a general knowledge exam, will test fundamental securities-
related knowledge, including knowledge of basic products, the
structure and function of the securities industry, the regulatory
agencies and their functions. See Exchange Act Release No. 83483
(June 20, 2018) (Notice of Filing and Immediate Effectiveness) (SR-
MSRB-2018-04).
\5\ MSRB staff reviewed the Series 51 exam bank and removed or
updated the impacted questions relating to 529 plans and municipal
fund securities to align with the Tax Cuts and Jobs Act of 2017
(``Jobs Act'') effective date of January 1, 2018. Thus, because of
the changes to the affected examination items, revisions to the
Series 51 exam content outline are required. For example, deleting
the term ``college'' from the phrase ``529 college savings plans''
to reflect that the tax code now allows for money saved in a 529
plan to be used for qualified K-12 education expenses.
\6\ Public Law 115-97, 131 Stat. 2054 (2017).
\7\ In addition to these examinations, the MSRB is in the
process of developing another professional qualification
examination, the Municipal Advisor Principal Qualification
Examination (Series 54 exam). The MSRB anticipates filing a proposed
rule change regarding the development of the Series 54 exam,
including a proposed content outline, in August 2018.
---------------------------------------------------------------------------
The proposed revisions to the content outlines have been filed for
immediate effectiveness pursuant to Section 19(b)(3)(A) of the Act \8\
and Rule 19b-4(f)(1) thereunder.\9\ The implementation date for the
revised Series 52 exam content outline and selection specifications
will be October 1, 2018, to coincide with the modifications to the
MSRB's qualification examination program and launch of the SIE exam,
while the technical amendments to the content outlines for the Series
50 exam, Series 51 exam and Series 53 exam will be announced by the
MSRB and implemented no sooner than 30 days after filing with the SEC.
---------------------------------------------------------------------------
\8\ 15 U.S.C. 78s(b)(3)(A).
\9\ 17 CFR 240.19b-4(f)(1).
---------------------------------------------------------------------------
The text of the proposed rule change is available on the MSRB's
website at www.msrb.org/Rules-and-Interpretations/SEC-Filings/2018-Filings.aspx, at the MSRB's principal office, and at the Commission's
Public Reference Room.
II. Self-Regulatory Organization's Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule Change
In its filing with the Commission, the MSRB included statements
concerning the purpose of and basis for the proposed rule change and
discussed any comments it received on the proposed rule change. The
text of these statements may be examined at the places specified in
Item IV below. The MSRB has prepared summaries, set forth in Sections
A, B, and C below, of the most significant aspects of such statements.
A. Self-Regulatory Organization's Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule Change
1. Purpose
The MSRB is charged with setting professional qualification
standards for brokers, dealers, and municipal securities dealers
(collectively, ``dealers''), and municipal advisors. Specifically,
Section 15B(b)(2)(A) of the Act authorizes the MSRB to prescribe
``standards of training, experience, competence, and such other
qualifications as the Board finds necessary or appropriate in the
public interest or for the protection of investors and municipal
entities or obligated persons.'' \10\ A professional qualification
examination is intended to determine whether an individual meets the
MSRB's required qualification standards. More specifically, the MSRB
has developed professional qualification examinations that are designed
to establish that persons associated with a dealer who engage in
municipal securities activities and persons associated with a municipal
advisor who engage in municipal advisory activities have demonstrated
minimum levels of competence and knowledge of the municipal market
activities they engage in, as well as the regulatory requirements
applicable to a particular qualification category.
---------------------------------------------------------------------------
\10\ 15 U.S.C. 78o-4(b)(2)(A).
---------------------------------------------------------------------------
The content outline for each MSRB examination serves as a guide to
the subject matter tested on the examination and prescribes the
baseline knowledge required in each functional area that is specific to
the role and responsibilities of associated persons. In addition, the
MSRB provides sample questions in the content outlines that are similar
to the type of questions that may be found on an examination. The MSRB
periodically reviews the content outline for each examination to
determine whether revisions are necessary or appropriate in light of
changes to rules or rule interpretations, or subject matter covered by
the examinations.
The MSRB is proposing to standardize certain information that
appears across the content outlines for the Series 50 exam, Series 51
exam, Series 52 exam and Series 53 exam as well as to make technical
changes to the format of each of the exam content outlines.
Specifically, the proposed revisions applicable to each content outline
are as follows: (i) Update the introductory
[[Page 31582]]
statement to clarify the intended goal of the content outline; (ii)
streamline details regarding the purpose of the examination and the
review process of the examination question bank; (iii) provide
information on the intention of pretesting questions; (iv) retire old
sample questions and provide a new set of sample questions for each
exam; and (v) replace the current list of reference materials with a
list of government and self-regulatory organization websites.
A more detailed summary of changes to the content outline for each
examination is outlined below.
Revisions to the Current Series 52 Content Outline
With the recently filed rule change to modify the MSRB's
professional qualification examination program,\11\ as of October 1,
2018, the new, restructured examination format for the Series 52 exam
will require individuals to take and pass the SIE exam \12\ and the
revised Series 52 exam to be qualified as a municipal securities
representative pursuant to Rule G-3.\13\ The MSRB's Series 52/53
Subcommittee of the Professional Qualification Advisory Committee has
worked to revise the Series 52 exam question bank and content outline
to reduce areas of duplication with the content to be tested on the SIE
exam. Upon the filing of the proposed revisions to the content
outlines, the MSRB will make available on its website, in addition to
the current Series 52 exam content outline, the revised Series 52 exam
content outline that will apply to the revised Series 52 exam effective
October 1, 2018. Individuals who open an exam enrollment window prior
to October 1, 2018 will be enrolling to take the current Series 52
exam, whereas individuals who open an exam enrollment window on or
after October 1, 2018 will be enrolling to take the revised Series 52
exam as well as the SIE exam.
---------------------------------------------------------------------------
\11\ See supra note 4.
\12\ FINRA filed the content outline for the SIE exam earlier
this year. See Exchange Act Release No. 82578 (January 24, 2018), 83
FR 4375 (January 30, 2018) (SR-FINRA-2018-002).
\13\ An individual does not have to take the SIE exam before
taking the revised Series 52 exam, but an individual will not be
qualified as a municipal securities representative until passing
both the SIE exam and the revised Series 52 exam.
---------------------------------------------------------------------------
The number of scored questions on the revised Series 52 exam will
be reduced from 115 multiple-choice questions to 75 multiple-choice
questions. Additionally, the test time, which is the amount of time
individuals would have to complete the examination questions, will be
reduced from three and one-half hours to two and one-half hours. As
currently is the case, each multiple-choice question would be worth one
point and the passing score will remain 70%.
Below is a summary of the proposed revisions to the Series 52 exam
content outline, which removes duplicative general knowledge content
that will appear on the SIE exam, and updates or deletes reference
information appearing on the outline to provide greater clarity on
topic areas covered on the exam. As previously referenced, the
selection specifications for the Series 52 exam submitted to the
Commission under a separate cover describe additional confidential
information regarding the Series 52 exam.
Contents Page
Subtopics area being removed under each topic header.
Part 2 on ``U.S. Government, Federal Agency and Other
Financial Instruments'' is being removed; the other parts are being
renumbered accordingly.\14\
---------------------------------------------------------------------------
\14\ The subject matter ``U.S. Government, Federal Agency and
Other Financial Instruments'' is proposed for deletion from the
Series 52 exam to avoid duplication of subject matter that will be
covered on the SIE exam. See supra note 13.
---------------------------------------------------------------------------
The following attachments: ``Attachment A: Contents of a
Typical Notice of Bond Sale'' and ``Attachment B: Outline of a Typical
Official Statement'' are being removed in addition to references to the
attachments within the outline.
``Reference Material'' is being revised to ``References.''
Introduction
The Examination
The percentages assigned to each topic on the Series 52
exam are being adjusted due to the deletion of the topic ``U.S.
Government, Federal Agency and Other Financial Instruments'' with the
(4%) weighting for that topic reallocated to other topic areas; the
revised percentages for each topic area will be: Municipal Securities--
(60%); Economic Activity, Government Policy and the Behavior of
Interest Rates--(14%); and Securities Laws and Regulations--(26%).
The reference to the number of questions on the Series 52
exam is being revised to update the number from 115 to 75 multiple-
choice questions and the time to complete the exam adjusted from
``three and one-half hours'' to ``two and one-half hours.''
Part 1: Municipal Securities
The parenthetical to the topic header is being revised
from 57% to 60%.
The following subtopics are being revised:
[cir] 1.2.1.1 on ``method of quotations'' is being revised to add
``bid/ask spread;''
[cir] 1.3.1.2.4 the acronym ``EMMA'' is being revised to
``Electronic Municipal Market Access website;''
[cir] 1.3.1.2.5 on ``new issue wires'' is being revised to ``new
issue/commitment wires;''
[cir] 1.3.2.2 on ``information sources'' is being revised to remove
the phrase ``alternative trading systems (ATS)'' and the phrase is
being added to 1.3.2.3 on the subtopic of ``market participants;''
[cir] 1.3.2.4.1 on ``kinds of transactions'' is being revised to
add ``riskless principal;'' and
[cir] 1.3.3.1 on ``published indices'' is being revised to add the
abbreviation for ``ICE'' to the parenthetical for ``London Interbank
Offered Rate.''
Subtopic headers 1.5.2 on ``relationship of bond prices to
change in maturity'' and 1.5.9 on ``day-count basis of computations of
dollar price and accrued interest'' are being removed; and the section
renumbered accordingly.
Part 2: Economic Activity, Government Policy and the Behavior of
Interest Rates
The parenthetical to the topic header is being revised
from 13% to 14%.
Topic headers and subtopics are being renumbered in their
entirety from part 3 to part 2.
Under the topic header ``monetary policy'' the subtopics
on ``objectives of Federal Reserve monetary policy;'' ``operating tools
of the Federal Reserve;'' and ``operations of the Federal Reserve'' are
being removed.
Part 3: Securities Laws and Regulations
Topic headers and subtopics are being renumbered in their
entirety from part 4 to part 3.
Topic headers on 4.2-4.2.2 on ``SIPC'' are being removed.
The following subtopics are being revised:
[cir] 4.3.4 on ``delivery of investor brochure'' is being revised
to ``investor and municipal advisory client education and protection;''
[cir] 4.3.7 on ``quotations and sales reports'' is being revised to
``quotations and reports of sales or purchases (transaction
reporting);''
[cir] 4.3.8 on ``confirmation, clearance, settlement and other
uniform practice
[[Page 31583]]
requirements'' is being revised to add the parenthetical ``minimum
denominations;'' and 4.3.10 on ``best execution'' is being revised to
add the parenthetical ``execution quality.''
Topic headers 4.3.25 on ``calculations;'' 4.3.29 on
``telemarketing;'' and 4.3.30 on ``anti-money laundering compliance
program'' are being removed.
Revisions to Other MSRB Content Outlines
Below is a summary of the proposed revisions to the content
outlines for the Series 50 exam, Series 51 exam and Series 53 exam as
part of the MSRB's periodic review of the content outlines for its
examinations. The proposed revisions to the content outlines are
technical in nature to delete or update topics to reflect current
references and nomenclatures and to update current rule requirements
and citations where identified. The proposed revisions to the content
outlines for the Series 50 exam, Series 51 exam and Series 53 exam do
not alter the content, specifications or scoring of these examinations.
Municipal Fund Securities Representative Examination--Series 51
Introduction
Footnote 1 referencing Rule D-12 is being removed.
Part 2: Product Knowledge
Subtopic header 2.3.2 on ``529 college savings plans'' is
being revised to ``529 savings plans.''
Under the subtopic header 2.3.2.1 on ``federal tax law
issues'' the term ``higher'' is being removed as part of the
explanatory description.
Under the subtopic header 2.3.3 on ``education savings
alternatives'' the term `UGMA'' is being removed as part of the
explanatory description.
Part 3: General Supervision
Topic header 3.2 on ``availability of MSRB rules'' is
being revised to ``availability of Board rules.''
Part 4: Fair Practice and Conflicts of Interest
Subtopic header 4.3.1 on ``fair dealing'' is being revised
to ``conduct of municipal securities and municipal advisory
activities.''
Part 5: Sales Supervision
Subtopic header 5.5.3 on ``delivery of MSRB investor
brochure'' is being revised to ``investor and municipal advisory client
education and protection.''
Part 7: Operations
The following subtopics are being revised:
[cir] 7.1 on ``confirmation of transactions'' is being revised to
``confirmation, clearance, settlement and other uniform practice
requirements with respect to transactions with customers;'' and
[cir] 7.3 on ``books and records'' is being revised to ``books and
records to be made by brokers, dealers, and municipal securities
dealers and municipal advisors.''
Municipal Securities Principal Examination--Series 53
Introduction
Footnote 1 on referenced MSRB rules is being removed and
all other footnotes renumbered.
Part 2: General Supervision
The following subtopics are being revised:
[cir] 2.2.1.5. on ``classification of principals and
representatives and qualification requirements'' is being revised to
``professional qualification requirements;''
[cir] 2.4.1.1 on ``fair dealing rule'' is being revised to
``conduct of municipal securities and municipal advisory activities;''
[cir] 2.4.3 on ``gifts and gratuities'' is being revised to
``gifts, gratuities, non-cash compensation and expenses of issuance;''
and
[cir] 2.4.4 on ``political contributions and prohibition from
engaging in municipal securities business'' is being revised to
``political contributions and prohibitions on municipal securities
business.''
Under the subtopic header 2.4.6.4 on ``product
advertisements for municipal fund securities'' the term ``college'' is
being removed from the parenthetical phrase ``including 529 college
savings plans.''
Part 3: Sales Supervision
The following subtopics are being revised:
[cir] 3.3.4 on ``sophisticated municipal market professionals
(SMMP)'' is being revised to ``transactions with sophisticated
municipal market professionals (SMMP);''
[cir] 3.4.5 on ``prohibition against reciprocal dealings with
municipal securities investment companies'' is being revised to
``reciprocal dealings with municipal securities investment companies;''
and
[cir] 3.6.3 on ``delivery of investor brochure'' is being revised
to ``investor and municipal advisory client education and protection.''
Part 4: Origination and Syndication
The following subtopics are being revised:
[cir] 4.1 on ``financial advisors'' is being revised to
``activities of financial advisors;''
[cir] 4.2. on ``new issue syndicate practices'' is being revised to
``primary offering practices;''
[cir] 4.2.3 on ``disclosures in connection with new issues'' is
being revised to ``disclosures in connection with primary offerings;''
and
[cir] 4.2.3.2 on ``underwriter submissions to EMMA'' is revised to
spell out ``EMMA'' as ``Electronic Municipal Market Access.''
Part 5: Trading
The subtopic header 5.5 on ``recordkeeping
responsibilities'' is being revised to ``books and records to be made
by brokers, dealers, municipal securities dealers and municipal
advisors.''
Municipal Advisor Representative Examination--Series 50
Section headers revised from ``function'' to ``part;''
references to ``college'' removed from ``529 savings plans.''
Eligibility Requirements
The sentence, ``In order to register for the Series 50
examination, a candidate must be associated with a municipal advisor
firm that is registered with both the Securities and Exchange
Commission and the MSRB'' is being removed to reflect changes in
processes post-September 12, 2017.
More specifically, the above referenced sentence refers to the
eligibility requirement that was put into place during the period in
which persons were able to engage in municipal advisory activities on
behalf of a municipal advisor prior to being qualified as a municipal
advisor representative. Currently, an individual must take and pass the
Series 50 exam prior to engaging in municipal advisory activities on
behalf of a municipal advisor.\15\
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\15\ See FAQs on Municipal Advisor Professional Qualification
and Examination Requirements (May 2018).
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As noted above, the MSRB has designated the proposed revisions to
the content outlines for immediate effectiveness. The implementation
date for the revised Series 52 exam content outline and selection
specifications will be October 1, 2018, to coincide with the
modifications to the MSRB's qualification examination program, while
the technical amendments to the
[[Page 31584]]
content outlines for the Series 50 exam, Series 51 exam and Series 53
exam will be announced by the MSRB and implemented no sooner than 30
days after filing with the SEC.
2. Statutory Basis
The MSRB believes that the proposed revisions to the content
outlines are consistent with Section 15B(b)(2)(A) of the Act,\16\ which
authorizes the MSRB to prescribe ``standards of training, experience,
competence, and such other qualifications as the Board finds necessary
or appropriate in the public interest or for the protection of
investors and municipal entities or obligated persons'' and Section
15B(b)(2)(C) of the Act,\17\ which requires, among other things, that
MSRB rules ``be designed to prevent fraudulent and manipulative acts
and practices, to promote just and equitable principles of trade, . . .
and, in general, to protect investors, municipal entities, obligated
persons, and the public interest. . .'' Section 15B(b)(2)(A) of the Act
\18\ provides the MSRB with authority to establish standards of
competence. The MSRB's professional qualification examinations are
designed to measure knowledge of the business activities and the
regulatory requirements, including MSRB rules, rule interpretations and
federal law, applicable to a particular qualification category.
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\16\ 15 U.S.C. 78o-4(b)(2)(A).
\17\ 15 U.S.C. 78o-4(b)(2)(C).
\18\ 15 U.S.C. 78o-4(b)(2)(A).
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The proposed revisions to the Series 52 exam content outline and
selection specifications are consistent with Section 15B(b)(2)(A) of
the Act \19\ because ensuring the Series 52 exam is uniquely tailored
to the relevant laws, rules and regulations of the municipal securities
market ensures that municipal securities representatives attain a
specified level of competence that would be appropriate and in
furtherance of the public interest. Additionally, removal of the
general securities knowledge content currently on the Series 52 exam
would provide the MSRB with greater flexibility to adapt the Series 52
exam to more specifically address municipal securities knowledge and,
in doing so, deepening municipal professionals' knowledge base in the
interest of investor protection. Also, proposed revisions to the
content outlines for MSRB-owned examinations (the Series 50 exam,
Series 51 exam and Series 53 exam) to reflect current references and
nomenclatures and to update current rule requirements and citations
where identified are likewise consistent with the purpose of Section
15B(b)(2)(A) of the Act \20\ because providing individuals with a
current guide to the subject matter covered on the examinations can aid
individuals' preparation for such professional qualification
examinations and facilitates standards of competence in furtherance of
the public interest.
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\19\ Id.
\20\ Id.
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The proposed revisions to the Series 52 exam content outline
together with the MSRB's larger effort to modify its current
qualification program are designed to achieve the stated objective of
Section 15B(b)(2)(C) of the Act \21\ to foster the prevention of
fraudulent practices by enhancing the overall professional
qualification program and establishing standards for professionals in
the municipal securities market. Additionally, ensuring municipal
securities professionals are familiar with the rules and regulations
that would be applicable to their role and responsibilities in the
municipal securities market is in furtherance of and consistent with
Section 15B(b)(2)(C) of the Act \22\ to facilitate the prevention of
fraudulent practices.
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\21\ 15 U.S.C. 78o-4(b)(2)(C).
\22\ Id.
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B. Self-Regulatory Organization's Statement on Burden on Competition
The MSRB does not believe that the proposed revisions to the
content outlines will result in any burden on competition that is not
necessary or appropriate in furtherance of the purposes of the Act. The
proposed revisions to the Series 52 exam content outline and changes to
the selection specifications for the Series 52 exam to reflect a more
tailored Series 52 exam would ensure the standard for qualification
remains robust to maintain an efficient and effective qualification
examination program. Additionally, the proposed revisions to the
content outlines for the Series 50 exam, Series 51 exam and Series 53
exam remain in alignment with the functions and associated tasks
currently performed by municipal securities representatives, municipal
fund securities limited principals, municipal securities principals and
municipal advisor representatives as well as serve as a guide to the
subject matter tested on the examinations with respect to the relevant
laws, rules and regulations. Additionally, the proposed revisions to
the content outlines for the Series 50 exam, Series 51 exam and Series
53 exam do not alter the content, specifications or scoring of these
examinations.
C. Self-Regulatory Organization's Statement on Comments on the Proposed
Rule Change Received From Members, Participants, or Others
Written comments were neither solicited nor received.
III. Date of Effectiveness of the Proposed Rule Change and Timing for
Commission Action
The foregoing proposed rule change has become effective pursuant to
Section 19(b)(3)(A) of the Act \23\ and paragraph (f)(1) of Rule 19b-4
thereunder.\24\ At any time within 60 days of the filing of the
proposed rule change, the Commission summarily may temporarily suspend
such rule change if it appears to the Commission that such action is
necessary or appropriate in the public interest, for the protection of
investors, or otherwise in furtherance of the purposes of the Act.
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\23\ 15 U.S.C. 78s(b)(3)(A).
\24\ 17 CFR 240.19b-4(f)(1).
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IV. Solicitation of Comments
Interested persons are invited to submit written data, views, and
arguments concerning the foregoing, including whether the proposed rule
change is consistent with the Act. Comments may be submitted by any of
the following methods:
Electronic Comments
Use the Commission's internet comment form (https://www.sec.gov/rules/sro.shtml); or
Send an email to [email protected]. Please include
File Number SR-MSRB-2018-05 on the subject line.
Paper Comments
Send paper comments in triplicate to Secretary, Securities
and Exchange Commission, 100 F Street NE, Washington, DC 20549.
All submissions should refer to File Number SR-MSRB-2018-05. This file
number should be included on the subject line if email is used. To help
the Commission process and review your comments more efficiently,
please use only one method. The Commission will post all comments on
the Commission's internet website (https://www.sec.gov/rules/sro.shtml).
Copies of the submission, all subsequent amendments, all written
statements with respect to the proposed rule change that are filed with
the Commission, and all written communications relating to the proposed
rule change between the Commission and any person, other than those
that may be withheld from the public in accordance with the
[[Page 31585]]
provisions of 5 U.S.C. 552, will be available for website viewing and
printing in the Commission's Public Reference Room, 100 F Street NE,
Washington, DC 20549 on official business days between the hours of
10:00 a.m. and 3:00 p.m. Copies of the filing also will be available
for inspection and copying at the principal office of the MSRB. All
comments received will be posted without change. Persons submitting
comments are cautioned that we do not redact or edit personal
identifying information from comment submissions. You should submit
only information that you wish to make available publicly. All
submissions should refer to File Number SR-MSRB-2018-05 and should be
submitted on or before July 27, 2018.
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\25\ 17 CFR 200.30-3(a)(12).
For the Commission, pursuant to delegated authority.\25\
Eduardo A. Aleman,
Assistant Secretary.
[FR Doc. 2018-14469 Filed 7-5-18; 8:45 am]
BILLING CODE 8011-01-P
